Disadvantages of Using Standard Costs and Variances Include All of the Following

question 77

Multiple Choice

Disadvantages of using standard costs and variances include all of the following except

• A)the excessive cost to keep standards up-to-date.
• B)companies that pay employees a salary because direct labor is a fixed cost rather than a variable cost.
• C)those manufacturing costs that enter Work in Process Inventory are recorded at standard cost, rather than actual cost.
• D)traditional standards can promote unfavorable employee behavior.

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